Renault signs 660mn worth JV deal with Iran
(L-R seated): Thierry Bollore, deputy director of competitiveness at Renault; Mansour Moazami, chairman of the board of directors of IDRO and Kourosh Solouk, deputy director of the Iranian Automobile Importers Association, attend a signing ceremony in Tehran on Monday
Tehran, Iran - French automaker Renault signed on Monday a long-awaited joint venture (JV) deal with Iran worth € 660mn to build up to 300,000 cars per year.
The new deal puts Renault in partnership with Iran’s state Industrial Development and Renovation Organisation (IDRO) and private firm Parto Negin Naseh.
Renault will hold a 60 per cent stake with IDRO and Parto Negin Naseh 20 per cent each.
“The first phase of this accord worth € 660mn provides for the annual manufacturing of 150,000 cars,” IDRO head Mansour Moazami said at a signing ceremony in Tehran.
He said the first cars will roll off the assembly line in around 18 months.
The new venture will produce Renault’s Duster and Symbol models at a refurbished factory in Saveh, around 120km southwest of Tehran. A second, three year phase will start in 2019 with production ramping up to 300,000 cars per year.
Under the deal, 30 per cent of the cars and parts made by the venture will be exported.
“We are happy to sign one of Renault’s most historical contracts here,” said Thierry Bollore, number two of the French carmaker, at the signing. “This is a unique agreement in terms of investment, of technology transfer... of the development of Iranian talent, and in the creation of a modern engineering and production centre,” he added.